What term describes the disparity in income where skilled workers earn more than unskilled workers?

Wage inequity specifically refers to the differences in earnings between workers based on their skills, education, and experience. This term effectively captures the situation where skilled workers receive higher wages compared to unskilled workers, highlighting the economic disparity that arises from differing levels of skill and qualifications in the labor market.

In contrast, economic disparity is a broader term that can refer to various forms of income differences within an economy, not limited to skills or labor. Income inequality encompasses a wide range of income differences across various socio-economic groups, which may not solely focus on the skill divide. Labor market division refers to the categorization of jobs and roles within an economy, which does not specifically address the wage differences associated with skill levels.

Thus, while all terms relate to economic differences, wage inequity most accurately addresses the specific scenario described in the question.